Here is some mildly encouraging news – while North America and Europe are turning into big quarantine zones, China is coming out of that phase and technology manufacturing is getting back to normal.
Capacity utilization rates at most LCD fabs in China, excluding those in Hubei province – the epicenter of the coronavirus outbreak – are recovering and are estimated to reach roughly 80% by the end of March, according to a Korea-based The Elec report.
The capacity resumption at the LTPS lines of Tianma Microelectronics is expected to reach 95% by the end of March, said the report.
While the capacity utilization at BOE Technology’s a-Si lines is likely to reach 80% by the end of March, the company may see its LTPS and OLED lines, which roll out panels mostly for Huawei, still operate at 60% by then, as Huawei has deferred its panel orders for its forthcoming P40 and also reduced flexible OLED panel orders for its mid-tier Nova lineup, the report added.
The LTPS line of China Star Optoelectronics Technology (CSOT) in Wuhan is expected to run at 40% of its capacity by end-March.
On the flip side of this, the virus outbreak has rapidly sent the global economy into a downward spiral and, probably if not already, a recession. So we might be heading into a situation where supply is returning, but there might be limited demand.
Dave Haynes is the founder and editor of Sixteen:Nine, an online publication that has followed the digital signage industry for some 14 years. Dave does strategic advisory consulting work for many end-users and vendors, and also writes for many of them. He’s based near Halifax, Nova Scotia, on Canada’s east coast.